China is Planning to Purge Foreign Technology and Replace With Homegrown Suppliers

[touzi]

http://www.bloomberg.com/news/2014-12-17...o-own.html

Western companies that earned significant part of their revenue from China will find the going tougher.

Excerpt:

China is aiming to purge most foreign technology from banks, the military, state-owned enterprises and key government agencies by 2020, stepping up efforts to shift to Chinese suppliers, according to people familiar with the effort.

The push comes after a test of domestic alternatives in the northeastern city of Siping that was deemed a success, said the people, who asked not to be named because the details aren’t public. Workers there replaced Microsoft Corp.’s (MSFT) Windows with a homegrown operating system called NeoKylin and swapped foreign servers for ones made by China’s Inspur Group Ltd., they said.

The plan for changes in four segments of the economy is driven by national security concerns and marks an increasingly determined move away from foreign suppliers under President Xi Jinping, the people said. The campaign could have lasting consequences for U.S. companies including Cisco Systems Inc. (CSCO), International Business Machines Corp. (IBM), Intel Corp. (INTC) and Hewlett-Packard Co.

[CityFarmer]

This thread is relevant, thus moved it to Economics News

Thanks

Regards
Moderator

[Temperament]

So many American companies can be replaced one day in China then. Alamak!
How to carry on to DRIP HP? Time to sell soon? But HP is going to spin off another company in 2015, i think.
They say Microsoft may moths to nothing one day like Rank Xerox. Is it possible or not? Maybe don't have to worry so much because by then i already say "Sayonara" to this world. Or may be not!

[Contrarian]

So many American companies can be replaced one day in China then. Alamak!
How to carry on to DRIP HP? Time to sell soon? But HP is going to spin off another company in 2015, i think.
They say Microsoft may moths to nothing one day like Rank Xerox. Is it possible or not? Maybe don't have to worry so much because by then i already say "Sayonara" to this world. Or may be not!

EMC, Oracle, IBM - These are the US companies that China is trying to replace the software.

SAP is not targetted. Because the Germans are seen as an ally of the Chinese.

[CityFarmer]

This is the China game...

China ‘wants Qualcomm to reduce licensing fees’

BEIJING — China wants Qualcomm to accept lower royalty payments for technology used by domestic smartphone manufacturers, people familiar with the matter said, in a proposal that would hurt the chipmaker’s main source of profit.

An agreement would end a 13-month anti-monopoly probe by the Chinese government. Negotiations with China’s National Development and Reform Commission (NDRC) are continuing, with last-minute changes still possible, the people said, asking not to be identified because the matter is private. The government also may require the company to unbundle its licensing agreements, the people said.

The potential concessions show the high price Qualcomm may have to pay for access to the biggest smartphone market. The world’s largest maker of mobile-phone chips is pushing back against China’s attempt to amend its business model out of concern it could lead to changes in other countries, the people said.
...
http://www.todayonline.com/tech/china-wa...nsing-fees